Tax department vows keep black money information secret

Tax officials have a hectic period ahead, adapting to a spate of changes ushered in by the new black money law, the compliance scheme and the flood of information that is only going to increase in the coming months.

For the moment, the department is dealing with the stream of queries related to the compliance scheme with a new set of frequently asked questions (FAQs), expected to be issued next week. The new clarifications would address questions related to overseas accounts of pensioners, IT professionals and students Stock Market Trading Tips 

In addition, it will deal with the issue of confidentiality and computation that have generated anxiety. Officials said that even the way information is being handled within the department is set for a change, with only joint commissioner rank officers now being designated to deal with issues related to foreign assets, as against the earlier system of an assistant commissioner being the assessing officers. Similarly, a new protocol is being put in place for watertight security to deal with overseas information flow. 

Information flow 

"The access to the information is limited and is strictly monitored," said an official, who did not wish to be identified, rejecting apprehensions that the information may be misused Himanshu Tiwari Astrologer Blog

"If the declaration is true there is nothing to fear," he said. Keeping in view the criticism from the past experience of rolling out the Voluntary Disclosure of Income Scheme, authorities are taking extra precaution to deal with the flow of information, which is set to increase after the implementation of the Foreign Account Tax Compliance Act (FATCA) pact signed with the US. 

Under the one-time offer, the compliance scheme will be open until September 30, with time up to December-end to pay the 30% tax, and another 30% penalty. The scheme was announced in the February Budget along with the stringent black money law — which provides for jail of up to 10 years and penalty of up to 90%, along with 30% tax. 

The revenue authorities are ensuring that the implementation of the law, one of the toughest in recent years, does not lead to any harassment or raise doubts about the department's handling of these sensitive cases Financial Astrology Trading Tips

The tax department has reached out, explaining the finer points of the law as well as the compliance window and is dealing with individual queries that are coming to them. Of course, most people are just telling officers that they are enquiring for a friend, who lives abroad and wants to avail of the window. 

Allaying concerns 

A set of FAQs has already been issued, which makes it clear that a company that has undisclosed foreign assets can file a declaration under Chapter VI of the Act. The directors of the company shall not be liable for any offence under the Income Tax Act, Wealth Tax Act, Fema, Companies Act and the Customs Act with regard to the declarations made in the name of the company. 

However, it does not provide immunity from prosecution under any other Act. For example, if the undisclosed asset has been acquired out of the proceeds of the sale of protected animals, the person will not be eligible for immunity under the Wildlife (Protection) Act, 1972. "How can we provide immunity under this law for, say, Fema violation?" said an official, rejecting concerns from some industry leaders Personal Numerology Tips

Tax officials say that steps are also being taken to ensure that there is no misuse or "leak" of the information that is received. Once a person fills the Form 6 on the department's website, it will be processed by the Commissioner of Income (International Tax). The information will be checked with the foreign tax division and after processing, the person making the declaration will be informed about the tax and penalty on the value of the undisclosed asset, which can be deposited by December 31. After this, an acknowledgement in Form 7 under the Black Money rules would be issued. 

But, only a handful of officers will know about it even within the department. "It will be shared strictly on a need-to-know basis," said a senior official Share Market Astrology